Many investors are flocking to the newly available IPO for Grub Hub. One floor manager told his employees at the exchange on Friday that he liked Grub Hub, but he preferred the competitor company Seamless because they were more widely used on Long Island, where he was from. Of course, Grub Hub and Seamless are the same company and so stocks in Grub Hub soared to $26 above the asking price for a 35% first-day boost.
It may be confusing for consumers and traders that Grub Hub and Seamless are owned by the same people, but the CEO Matt Maloney says it is all part of the strategy. When they went public, they wanted to utilize a portfolio approach that had Grub Hub first and still maintained their three other brands: Seamless, Menu Pages, and All menus. After hearing the story of the floor manager, Mahoney said, “If traders on the floor of the NYSE love Seamless, then bless them…We will put dollars behind both, but we will be as strategic as possible. You can see the branding here, there are Seamless logo everywhere.” Even outside the stock exchange Seamless logos appear underneath the newly public Grub Hub signs. “Grub Hub is out national brand, so most markets in the U.S. are under Grub Hub. Seamless we’ve really pulled back to Manhattan” Maloney states.
Originally both companies were separate and planning on going public independently. The two ended up joining forces after they had great success in different geographical areas. With the two companies combined they now have over $1.3 billion in gross food sales per year and delivered food to 3.4 million people in 2013.
Maloney is excited about the future of both companies and has been celebrating Grub Hub going public, “The teams is taking this very seriously, but there is a of excitement.” Maloney promises that the company will continue to grow and improve and being listed on the NYSE is very important to the company.